A payslip is a document provided by your employer that outlines your earnings and deductions for each pay period. It shows everything from your gross pay and taxes to social insurance and pension contributions, giving you a clear breakdown of how your salary is calculated. In this guide, we’ll help you understand the key elements of your payslip, including common abbreviations, deductions, and the differences between gross and net pay, so you can better navigate your earnings and tax responsibilities.
In this guide, we will cover:
- 7 payslip abbreviations in Ireland
- Voluntary contributions and deductions
- How can Irish Tax Rebates help me with my payslip?
- FAQs
7 Common Payslip abbreviations in Ireland explained
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Payslip abbreviations in Ireland can be a bit confusing at first, but they are key to understanding how your earnings and deductions are calculated. In this section, we will break down the nine most common abbreviations you’ll find on your payslip and explain what they mean, along with examples of how they’re used.
1. PPS number
Your Personal Public Service (PPS) number is a unique reference number assigned to you by the Irish government. It’s used for accessing social welfare benefits and managing your taxes. It’s listed on your payslip to ensure your taxes and deductions are recorded correctly.
2. PAYE
Pay As You Earn (PAYE) is a tax that’s automatically deducted from your wages every time you’re paid. Almost everyone, except the self-employed, has to pay PAYE tax. Before you receive your paycheck, your employer calculates how much income tax, USC, and PRSI you owe and deducts these amounts from your salary.
For example, if you’re paid monthly and earn less than €3,666.67 gross per month, or if you’re paid weekly and earn less than €846.15 gross per week, 20% of your income is taken in tax. If you earn more than €44,000, a 40% tax will be applied to the amount above this threshold.
A) Income Tax
For 2024, the standard rate tax band for single individuals is €42,000, taxed at 20%, meaning you will pay 20% tax on earnings up to this amount. As per Budget 2025, this band will increase to €44,000.
B) PRSI
Pay Related Social Insurance (PRSI) is a deduction from your gross pay that goes toward social welfare benefits and pensions. The amount you pay depends on your earnings and the type of work you do. As of the 1st of October 2024, PRSI rates increased by 0.1%, so your payslip may show a slightly higher deduction.
Did you know you might be eligible for PRSI benefits?
Let our experts help you make sense of it all.
C) USC
The Universal Social Charge (USC) is a tax on your income. If your gross income is more than €13,000 per year you have to pay USC. Once your earnings go over this threshold, you will pay USC at the relevant rate on your entire income. The amount of USC is calculated based on your weekly or monthly pay.
For 2025, the USC rate of 4% will be reduced to 3%. The starting point for the 3% rate will increase by €1,622, so it will now apply to income between €27,382 and €70,044.
3. Gross pay
Gross pay is your total earnings before any deductions come into play. Think of it as the starting point of your payslip. This includes your basic salary, overtime, bonuses, and other taxable.
4. Net pay
Net pay is the amount you take home after all deductions have been made. This means subtracting taxes like PAYE (Pay As You Earn), PRSI (Pay-Related Social Insurance), and USC (Universal Social Charge) from your gross pay. Knowing your net pay isn’t just about understanding your earnings; it’s also key to managing your finances and staying on top of Ireland’s tax regulations.
5. Tax credit
Tax credits reduce the amount of income tax you pay. Once your tax is calculated, Revenue will apply any tax credits you’re eligible for. The tax credits you receive depend on your situation. Some credits are automatically granted by Revenue, while other tax credits need to be claimed by you.
6. SCROP
The Standard Rate Cut-Off Point (SCROP) is the amount of income you can earn before you start paying tax at the higher rate of 40%. Any income above this point is taxed at a higher rate, while earnings below it are taxed at the standard rate of 20%. The government sets this limit each year. For 2025, the limit will be €44,000 at the 20% tax rate if you’re single, widowed, or a surviving civil partner without children.
7. LPT
Local Property Tax is for homeowners in Ireland. If you’ve opted to pay it through your salary, it’ll show up as a deduction.
Understanding voluntary deductions and contributions
In Ireland, alongside mandatory deductions like tax and social insurance (PRSI), there are also voluntary contributions and deductions that you can choose to make. These include optional payments such as pension contributions, health insurance premiums, or union fees. While these are not required, they can offer valuable financial benefits, such as tax relief. For example, pension contributions offer tax relief at source, reducing the amount of income tax you have to pay.
How can Irish Tax Rebates help me with my payslip?
Understanding your payslip and making sure you’re not overpaying on taxes can be confusing. That’s where we come in. Our qualified experts can help you claim all the tax credits you’re entitled to and guide you through every deduction. If you’re ever unsure about your payslip or have questions about tax deductions, we are here to help. Get in touch with our team and make your tax matters simpler!
FAQs
1. How do I get my payslip?
In Ireland, you are entitled to your payslip from your employer either by email or through a payroll system.
2. Where do I get a salary certificate in Ireland?
A salary certificate in Ireland can be requested directly from your employer or HR department. It is a document that confirms your income and employment details, often needed for loan applications or rental agreements. Employers are required to provide this upon request.
3. How do I recover my payslips?
If you’ve lost your payslip, you can ask your employer for a copy. Most employers keep records for several years, so they can usually give you a duplicate. You can also check your online payroll portal if you have access to one.
